• First instalment on the first three vessels
• Payment for fourth vessel upon refund guarantee
• Declaration of three options
• New options received

First three vessels: Contracts effective, first instalment made and refund guarantee in place

The board of directors is pleased to announce that the Company has received satisfactory refund guarantees for the first three VLCCS (Hull nr 5455, Hull nr 5456 and Hull nr 5457) to be constructed at Daewoo Shipbuilding Marine Engineering Co., Ltd (the "Shipyard") and has made the first instalment for each contract, totalling USD 25.56m, to the Shipyard. The vessels are the latest Daewoo design and will be outfitted with a scrubber, which will provide the vessels with both technical and commercial advantages compared with the existing VLCC fleet. In addition, the vessels will be fully compliant with the new IMO environmental regulations coming into force in January 2020. The second instalments are between 20 January 2019 and 20 March 2019, and the vessels are scheduled for delivery is 4q 2019. The costs for each vessel is USD 82.5m, plus USD 2.7m for scrubber.

The fourth vessel: First instalment upon refund guarantee The board will make the first instalment of USD 8,55m for the fourth vessel (Hull nr 5460) once the refund guarantee is in place. The design is identical with the first three vessels and total cost is USD 82.8.m, plus USD 2.7m for scrubber. The board anticipate that the refund guarantee will be in place within the next few weeks. Second instalment is scheduled for 20 January 2019 and delivery is 4q 2019.

Declaration of options
The board has decided to exercise the options for construction three additional vessels. Each of the option vessels have a price of USD 82.8m, plus USD 2.7m for scrubber. First instalment, totalling USD 25,65m is expected to be paid by 1st September 2018. Estimated delivery times are 31 May 2020, 30 June 2020 and 31 August 2020. The Company foresee that the signing will occur in the near future and that the second instalment for each of the contracts will be between 19 June 2019 and 27 September 2019. After signing of the contracts, the Company and Shipyard will sit down and negotiate in good faith for earlier delivery schedules for the option vessels.

New options for additional vessels
The Company has received three new options from the Shipyard for identical technical specifications. The options are each priced at USD 92m, including scrubber, and with delivery 1st half 2021. These new options will expire 15 August 2018.